What Happens After Offer is being Accepted? Home Buyer Under Contract Checklist
Congratulations, your offer had been accepted by seller, you are now under contract! An accepted offer is only the beginning of the buying process. There are a lot more work to do to get the transaction closed and to transfer ownership. The most common question buyers may ask after their offer has been accepted is: “What happens next?”
Earnest Money
Earnest money is your proof as a buyer to show seller your “earnestly” want to purchase their home. This cash deposit involved at after contract being accepted by seller. This is the first and most important part of escrow process to protects the seller’s interests as they take their house off of the market. Typically earnest money to be delivered to escrow company within one business day after contract being accepted. Make sure that your earnest money is delivered on time and in the proper payment form as stated in purchase contract.
Home Inspection
Once you have an executed sales contract, the clock starts on your inspection period. Typically the home inspection period is 10 days after contract accepted. Make sure when your inspection period ends and that you complete your inspections in a timely manner. The most common is standard home inspection and pest inspection is strongly recommended. Depending on the inspection result, you may need additional inspection such as radon, structural, HVAC, mold and others.
Financing Documents
If you are getting a loan, the contract will includes a financial contingency. You have a set amount of time per contract to secure a loan to purchase the home. Your lender will begin asking for a lots of paperwork. Be prepared to provide plenty of documentations throughout the transaction. It is important to treat each request by your lender with high priority during this time to ensure a quick and easy loan approval prior to closing.
Title Commitment
This step is handled by the title company. The title company you selected is responsible for issuing title and providing title insurance. The title company will make sure there are no issues with the property such as any outstanding mortgages, unpaid taxes and liens that may impact your ownership of the home after closing. Review the title commitment as soon as possible after receiving from title company.
Appraisal
Your lender will require an appraisal by an independent party in order to finalize the mortgage. The appraisal is to determines the actual value of the home. The lender want to make sure that home you are purchasing is worth the loan amount that you are asking for. It is likely that you will be paying for the appraisal cost, so it’s best to wait until inspection periods are over and any repairs had negotiated and agreed upon, if any.
Home Insurance
Your lender will require you to have a Home Owner’s Insurance Policy on the property that you are buying. You should shop around and choose the homeowner’s insurance provider and policy that works best for you. Although we are in Arizona, some area may require additional flood insurance. Your lender will let you know if flood insurance is needed. Once you have the policy in place, let your lender and title company know.
Setup Utilities
Since you will be the official home owner on the day of closing, you want utilities under your name. Keep in mind that some utilities company do charge extra for same day service, you might want to set it up earlier.
Pre-closing Walkthrough
The pre-closing walk-through typically occurs one or two days before closing. It gives you a chance to make sure that the home conditions are same as when you making offer. All agreed upon repairs have been completed and there are no last-minute problems with the home before closing.
Schedule Closing
In anticipation of closing, your agent will make sure all documents are ready to sign. The signing is often held at the offices of the title company. Make sure that you will be present for the entire closing. It can take over an hour to complete.
Keys Time
Once all parties had signed all the documents, the escrow officer will record the transfer of ownership with the county. You will be officially become the new owner after recorded. Your Realtor then will make arrangement to hand over the key to you. Congratulations! You just become a homeowner.
Conclusion
Each of the tasks listed above has the potential to sabotage your home purchase. Make sure that you stay on top of your transaction. When lender or title company asking for something, please provide them as soon as possible. A good REALTOR® is your best resource to help avoid issues that might jeopardize your home purchase. They will walk you through each step and make sure that nothing is missed.
Swee Ng, Realtor and Phoenix East Valley resident specializing in win-win real estate transaction through great communication and fighting for his clients’ best interest. After all, this is more than real estates, this is about your life and your dreams.
If you are looking to buy or sell your home in Phoenix AZ area, we hope you will consider us. Contact us today for complimentary consultation.
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